Audi A4 Lease Questions

Comments

Hi Carman, thanks for the education and great insights you offer on this forum. Will you kindly provide me with the current September money factor and residual on the 2012 as well as the 2013 A4 2T Premium models for a 36 months, 39 months, 42 months lease? I am planning to do 10,000 miles per year.

Audi Financial Services' September buy rate lease money factor and residual value for a 36-month lease of a 2012 A4 2.0T Sedan Premium quattro with 10,000 miles per year are .00167 and 53%, respectively for consumers who qualify for its top credit tier.

The numbers for an otherwise identical 39-month lease are .00187 and 51%.

The numbers for an otherwise identical 42-month lease are .00187 and 49%.

The numbers for similar leases of a 2013 model are .00114 / 58%, .00134 / 56% and .00134 / 54%.

As you can probably tell, Audi pulled the plug on its lease support on 2012 models. The above standard lease program can be combined with the new $1,000 dealer cash that Audi is providing on the '12 A4.

Was offered a residual of 56% and money factor of .0017083 on a 39 month lease 10k miles for a 2013 a4. Walked out for now. Can you confirm those terms are the best Audi can do? I would be top credit tier. Thanks.

Hi bkd33. The money factor that you were quoted is a little high. Audi Financial Services' September buy rate lease money factor and residual value for a 39-month lease of a 2013 A4 Sedan Premium Plus quattro with 10,000 miles per year are .00134 and 56%, respectively for consumers who qualify for its top credit tier.

Hi cliffpoz. It would be much easier for us to evaluate this deal if you were able to provide us with this car's selling price. The selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Without this number, it is more difficult to tell how large a dealer discount you are being given and in turn if there is any room left to negotiate. Let us know and I'm sure that either myself or another knowledgeable community member will let you know what they think.

As far as this car's lease program goes, Audi Financial Services' September buy rate lease money factor and residual value for a 36-month lease of a 2013 allroad Premium with 10,000 miles per year are .00135 and 58%, respectively for consumers who qualify for its top credit tier.

You're welcome cliffpoz. OK, so you're interested in a 2013 Audi Allroad Premium that has an MSRP of $43,095 and a selling price of $41,000. That's a $2,095 discount on a vehicle that has a spread of around $3,000 between its full MSRP and its dealer invoice price. So, you are at around $1,000 over invoice. That's not bad.

Hi milfedout. The money factor that you were quoted for the A4 looks good. Let's turn to the selling price.

As a current Audi lessee you are eligible for a $1,000 cash incentive on your new A4. Add to that the spread of around $2,700 between this car's full MSRP and dealer invoice price and you have a total of around $3,700 or so to play with during your negotiations. You were quoted a dealer discount of $1,785. Soooooo if the dealer is not subtracting the loyalty cash from your offer you're still at around $2,000 over invoice. That's not horrific, but you should be able to do a lot better than that on an A4. The likely reason why this spread is so large is that you are getting out of your TT lease extremely early. Doing so usually hampers one's ability to get the best possible deal on their new vehicle.

The salesguy said it would be 35 remaining payments of $510 including taxes. Will it really be $1500 out of pocket and really $510 for the remaining 35 months for a total of $19,350? Anything hidden or fishy?

Also, do you know if I can still prepay $450 upfront for 36 total months of AudiConnect (6 months free +30 mos prepaid)?

Hi Paul. $700 per month is way out of whack for an Audi A4, even a $44,000 one. Heck even at full MSRP this car would only be $600 per month, and I know that you can do better than full MSRP. Run away from this dealer.

If I was in the market for this car in an area that has a decent level of competition, I personally would shoot for a selling price of $500 to $1,000 over invoice plus the use of Audi Financial Services' buy rate lease money factor of .00114. You can look up the exact invoice price of the car that you want over in the New Vehicle Pricing section of Edmunds.com.

Hi dan412. The money factor that you were quoted looks good. It's right in line with Audi Financial Services' buy rate for this car. Now let's take a look at this car's selling price.

The allroad that you're interested in probably has a spread of around $3,200 or so between its full MSRP and its dealer invoice price. That probably puts the selling price that you were quoted at around $1,200 or so over invoice. That's not too bad, but there might be a couple hundred dollars to play with here if you shop around in an area that has a decent level of competition.

You're very welcome schindy. You are being given a huge discount on this car. The selling price looks good to me.

Having said that, a few thoughts:

First you would be better off going with a zero down lease, i.e. not paying a capitalized cost reduction out of pocket at signing. I always advise consumers not to make large down payments on leased vehicles. Consumers who put money down on leases risk losing part or all of the money that they laid out if their car is totaled in an accident or stolen and never recovered. Even though it means that you monthly payment will be slightly higher, it's safer to go with a zero down lease.

Also, mak sure that the dealer uses Audi Financial Services' current buy rate lease money factor of .00114 to calculate your car's payment (top credit tier). With such a low selling price they may be looking to mark your car's money factor up for back-end profit.

Other than tax/tag/title fees, should I expect to pay additional dealer fees (ie. $599 doc fee) or or is this just total crap? I'm trying to calculate a reasonable offer for a 2013 A4 Premium Plus and not sure if I should take these type of dealer fees into account. Has anybody been successful at not paying these fees or are they just a cost of buying the car?

hi garakl. You really shouldn't lease an Audi for 48 months. Audi's special lease money factors are only available for up to 42-months.

Audi Financial Services' October buy rate lease money factor and residual value for a 42-month lease of a 2013 A4 Sedan Premium Plus quattro with 12,000 miles per year are .00134 and 53%, respectively for consumers who qualify for its top credit tier.

The residual value for a lease with only 10,000 miles per year would be 1% higher.